Chalice Mining has entered into an earn-in and joint venture agreement with Northam Resources to further explore ore bodies it believes to be similar to its Gonneville deposit.
Under the agreement, Chalice Mining may earn up to a 70 per cent joint venture interest in Northam Resources’ licences located 35 kilometres east of the Gonneville deposit, located at the southern end of the Julimar project in Western Australia.
Chalice has identified geological similarities between Northam Resources’ tenements and the Gonneville deposit, which was discovered when Chalice intersected shallow high-grade nickel-copper-platinum group elements (PGE) mineralisation at the deposit in March 2020.
As per the agreement, Chalice Mining has paid Northam Resources $150,000 up front in cash as a deposit, with $100,000 being refundable if the due diligence conditions are not met.
A further $2.45 million will be paid to Northam Resources in cash or Chalice Mining shares upon satisfaction of due diligence.
Chalice Mining will then need to spend $7 million on exploration over four years to earn a 51 per cent interest in the tenements, with a minimum commitment of $2 million on exploration within two years. It can also earn a further 19 per cent interest by spending $10 million on exploration over four years and paying Northam Resources $1 million in cash or in Chalice shares.
Chalice said it will have a dual focus to explore known targets, as well as deploy its proven exploration approach in the West Yilgarn Province to identify and explore new targets across the region.
“Given the project is contiguous with Chalice’s existing West Yilgarn tenure, exploration activities can commence immediately,” Chalice Mining said.
“Several land access agreements are already in place over key target areas which allow for non-ground disturbing exploration and access for drilling.”
In May, Chalice reported that diamond drilling at the Gonneville deposit identified platinum group element (PGE) sulphide mineralisation.